Designing a product costing system for a medium size manufacturing company

This is an applied resea1'Ch project involving a real life manufacturing company which produces metal parts according to customer specifications. The primary focus of this study is to design an appropriate product costing system for the company. At present, the company does not have a system whereby the cost of manufacturing a product is systematically documented and recorded. Hence, it requires a 2uitable product costing system to track its product costs to help it quote competitiYe prices for its products. During the course of this study, a detailed study of the company's present recording system as well as its production system was made. Also , a review of the costing systems outlined in the various cost accounting texts were done to design a system which would best serve the company's needs. Emphasis has been placed on the feasibility of the proposed system for the company. Careful evaluation of the company's present system had been C.1ade in order to better understand the needs of the company. It is hoped therefore tbat the propo::;ed system designed. when implemented, will prove useful to the comp 3.lly.ACCOUNTANC